One observer said the government’s move to curb “three types of public expenses” dealt a serious blow to high-end hotels. The budget cuts for official conferences led to a 30-40% drop in revenue from conferences and dining, affecting the financial results of the entire hotel industry.

Huatian Hotels said it would launch the Huatian Select Hotels brand within its luxury brand to increase profits by entering the mid-range hotel market and business hotel market to appeal to a broader customer base. It will make guest rooms the key revenue focus.(Translation by David)